HCL Technologies has acquired managed data service provider and Amazon Web Services cloud migration consultant Starschema of Budapest, Hungary. The purchase price was roughly US$42.5 million, multiple reports suggest. A valuation based on EBITDA multiples was not disclosed.
This is technology M&A deal number 97 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals for 2022, 2021 and 2020 listed here.
HCL Technologies, based in Noida, India, is an international IT services and software consulting company. The company has offices in 50 countries and more than 187,000 employees.
This deal will bolster HCL’s capability in data engineering expertise and increase HCL's presence in Central and Eastern Europe, the buyer said. Starschema's expertise spans consulting, technology and managed data engineering services to Global 2000 companies in the U.S. and Europe, the seller said. The deal is expected to close in March 2022.
HCL Acquires Starschema: Executive Perspectives
In a prepared statement about the deal, Starschema CEO Tamas Foldi said:
“Joining HCL will enable us to keep our strategic focus and expand our data engineering capacity to provide a greater breadth and depth of services to clients. As part of HCL’s full spectrum of technology services, we will leverage our expertise in data engineering and emerging data technologies to solve companies’ data challenges, through building fast, scalable solutions that make people more effective and companies more profitable. This strategic move also represents exemplary career growth opportunities for our people.”
Added Vijay Guntur, president of engineering and R&D services at HCL Technologies:
“Starschema will strengthen our data engineering capabilities, providing us with the ability to leverage its solutions and talent in Central and Eastern Europe. Starschema’s capabilities will further scale HCL’s data engineering competencies at our integrated delivery centers across the world. Engineering talent will continue to remain in high demand, and Starschema offers a specialized talent pool in a strategic growth area for HCL. Following the acquisition, HCL will be able to offer data engineering consulting and near-shore access to digital engineering services to a wide base of clients.”
HCL Acquisition Timeline
HCL has remained relatively active on the M&A front. Noteworthy deals include acquiring:
- September 2020: Australia management consulting firm DWS Limited for US$114 million.
- May 2020: The majority of Symantec’s enterprise consulting team from Broadcom.
- March 2019: Strong-Bridge Envision (SBE), a Seattle-based digital transformation consulting firm, for $45 million.
- December 2018: Selected IBM software businesses — including some classic Lotus Notes, Domino and Tivoli products — for US$1.8 billion.
- June 2018: SAP partner H&D International Group for US$34.7 million.